The National Payments Corporation of India (NPCI) has announced new rules for UPI transactions that will come into effect from September 15, 2025. These fresh guidelines introduce higher transaction limits, but only for Person-to-Merchant (P2M) payments including insurance, EMIs, investments, travel, and utility services. The daily cap for Person-to-Person (P2P) transfers, such as sending money to friends or family, remains unchanged at ₹1 lakh per day.
What’s Changing in UPI Rules
The changes are designed to make it easier for individuals and businesses to complete large-value digital payments through UPI. Here are the new revised limits across different categories:
- Capital market investments and insurance: Raised from ₹2 lakh to ₹5 lakh per transaction, with a daily cap of ₹10 lakh.
- Government e-marketplace and tax payments: Increased from ₹1 lakh to ₹5 lakh per transaction.
- Travel bookings: Transaction cap lifted from ₹1 lakh to ₹5 lakh, with a daily maximum of ₹10 lakh.
- Credit card bill payments: Now allowed up to ₹5 lakh per payment, daily capped at ₹6 lakh.
- Loan and EMI collections: Increased to ₹5 lakh per transaction, daily maximum of ₹10 lakh.
- Jewellery purchases: Doubled to ₹2 lakh per transaction, with a daily cap of ₹6 lakh.
- Term deposits (digital onboarding): Increased from ₹2 lakh to ₹5 lakh per transaction.
- Digital account opening: No change, limit stays at ₹2 lakh.
- Foreign exchange payments via BBPS: Permitted up to ₹5 lakh per transaction, daily capped at ₹5 lakh.
Why It Matters
With UPI becoming the backbone of everyday payments in India, these changes mark an important step in enabling high-value transactions digitally without dependence on traditional banking channels. People paying for insurance, loans, or big-ticket purchases like travel or jewellery can now do so seamlessly through UPI.
By contrast, regular peer-to-peer transfers remain capped at ₹1 lakh daily, ensuring that P2P usage continues primarily for smaller, personal transactions.
Rollout Date
These new limits will roll out nationwide starting September 15, 2025, and are expected to significantly boost the adoption of UPI for larger transactions across industries.